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INTERIM RESULTS6-MONTHS ENDING 30 JUNE 2012

STRATEGIC & OPERATIONAL UPDATE20TH AUGUST 2012

AGENDA

• Interim Results / Vision & Strategy

• Rombat Acquisition

• Start/Stop Battery Development & Commercialisation

Program

• Metair Re-branding

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RESULTS

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• Continued delivery on our strategy

• First overseas acquisition in the form of Rombat in Romania

• Return to normality in First National Battery after the fire in

same comparative previous period

• Launch of Start/Stop battery technology in the local OE

(Original Equipment) market

• Re branding of Metair Investments Limited

• Start of major overseas capital investment

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METAIR TRADING CHARACTERISTICS FOR THE PERIOD

• Healthy local OEM (Original Equipment Manufacturer)

demand

• Improved local aftermarket sales

• Non-automotive demand growth

• Doubling of aftermarket exports sales

• Entrance of overseas competitive low cost producers in local

market

• Exchange rate fluctuations (devaluation compared to previous

period) 5

METAIR TRADING CHARACTERISTICS FOR THE PERIOD

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VISION & STRATEGY

VISION

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“To generate value for all our stakeholders by managing and controlling businesses that through manufacturing and/or logistical excellence, deliver quality, cost-competitive products to our customers in a sustainable manner.”

STRATEGY

• Continue to target balance in the business

• Nurture Original Equipment (OE) business and expand Original Equipment Manufacturer (OEM) customer base

• Focus intently on cost

• Secure and grow aftermarket product range

• Pursue the acquisition of a complementary business to leverage off our technologies, efficiencies and product range in the aftermarket and non-automotive business

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FINANCIAL REVIEW

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FINANCIAL HIGHLIGHTS

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ITEM2012

R’000

2011

R’000

↑ Revenue 2 589 466 2 051 834

↑ EBITDA excluding PPE fire effect 396 971 330 392

↑ Operating Profit 325 415 307 757

↑ Operating Profit excluding PPE fire effect 325 415 279 387

Operating Income Margin excluding PPE fire effect 12,6 13,6

↑ Profit After Tax 233 084 232 587

Attributable Profit to Ordinary Shareholders 202 438 207 985

Earnings Per Share 143 147

↑ Headline Earnings Per Share 143 128

Net Cash including borrowings (17 976) 245 283

REVENUE GROWTHStrategic Influence

• Exchange rate influences (Not from strategy)

• Product diversification (From strategy)

• Customer diversification (From strategy)

• Aftermarket growth (From strategy)

• Acquisitions (From strategy)

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REVENUE GROWTHStrategic Influence

• Exchange rate influences (Not from strategy) + R100 million

• Product diversification (Strategic) + R70 million

• Customer diversification (Strategic) + R100 million

• Acquisitions (Strategic) + R147 million

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REVENUE GROWTHStrategic Influence

• Acquisitions + R147 million

– Customer diversification + R39 million

– Aftermarket diversification + R108 million

• Local R31 million

• Export R77 million

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GROUP REVENUE

2151

2642

2984

4180

3342

3753

4294

2052

2589

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

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R’m

illion

OPERATING PROFIT (Excluding impact of fire and impairment)

247

311282

217189

383

542

299325

0

100

200

300

400

500

600

15

R’m

illion

HEADLINE EARNINGS PER SHARE (HEPS)

104

133124

7467

189

260

128143

0

50

100

150

200

250

300

2005 2006 2007 2008 2009 2010 Dec-11 Jun-11 Jun-12

CP

S (

Cen

ts p

er S

hare

)

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SEGMENTAL REPORTING

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Revenue Profit before interest and tax

Six months ended 30 JuneYear ended December Six months ended 30 June

Year ended December

R’000 2012 2011 2011 2012 2011 2011

Local

Original equipment 1 608 915 1 285 011 2 697 984 176 348 149 998 276 631

After market 519 491 433 776 893 159 84 326 91 486 194 157

Non-auto 244 798 206 134 441 385 32 684 34 993 58 956

2 373 204 1 924 921 4 032 528 293 358 276 477 529 744

Direct exports

Original equipment 50 500 45 789 86 201 9 373 (3 631) (7 941)

After market 149 508 65 622 139 060 14 325 9 727 20 698

Non-auto 16 254 15 502 36 363 1 116 431 2 782

216 262 126 913 261 624 24 814 6 527 15 539

Property rental 31 833 30 436 60 873 29 106 29 991 59 980

Reconciling items * (31 833) (30 436) (60 873) (8 731) 3 497 (9 701)

Total 2 589 466 2 051 834 4 294 152 338 547 316 492 595 562

Net interest income (1 085) 1 423 6 438

Profit before tax 337 462 317 915 602 000

RECONCILIATION OF EBITDA TO PROFIT

383

0

100

200

300

400

500

600

EBITDA Depreciation Net financing costs Tax expense Associates Profit

(1)(104)

13 233

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R’m

illion (58)

MOVEMENT IN NET CASH

455

-100

0

100

200

300

400

500

600

700

(132)

(442)

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R’m

illion

245

(98)

(88)

42 (18)

WORKING CAPITAL

ITEMJune2012

June2011

Dec2011

Dec2010

Inventory 763 608 694 607

Trade & receivables 758 552 519 397

Trade & payables (718) (551) (533) (503)

Total 803 609 680 501

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DAYS

Inventory 53 54 59 59

Trade & receivables 53 49 44 39

Trade & payables (50) (49) (45) (49)

Total 56 54 58 49

All days calculations based on turnover

R’million

ROMBAT ACQUISITION

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EUROPEAN MARKET AND ENCAPSULATING AFRICA

ROMBAT ACQUISITION RATIONALE

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STRATEGY

• Continue to target balance in the business

• Nurture Original Equipment (OE) business and expand Original Equipment Manufacturer (OEM) customer base

• Focus intently on cost

• Secure and grow aftermarket product range

• Pursue the acquisition of a complementary business to leverage off our technologies, efficiencies and product range in the aftermarket and non-automotive business

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ROMBAT PPAPurchase Price Allocation

Recognised amounts of identifiable assets acquired and liabilities assumed:

R’000 Provisional fair

Value

Assets

Trademark and other intangible assets 30 003

Property, plant & equipment 271 186

Inventory 97 368

Trade and other receivables 185 473

Cash and cash equivalents 111 386

695 416

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ROMBAT PPAPurchase Price Allocation

Recognised amounts of identifiable assets acquired and liabilities assumed:

R’000 Provisional fair

Value

Liabilities

Borrowings (61 542)

Provisions (2 363)

Trade payables and other payables (103 408)

Overdraft (96 755)

Net deferred tax (11 594)

(275 662)

Total identifiable net assets 419 754

Less: Non-controlling interest (3 008)

Goodwill 32 608

Purchase consideration transferred 449 35426

ROMBAT ACQUISITION HEALTH CHECK

• Transfer of Associates In progress

• Transfer of Technology In progress

• Integration Going well

• Change Management In progress

• Start/Stop facility In progress

• Expansion of aftermarket footprint Europe

• Availability of recycled material

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START/STOP BATTERY DEVELOPMENT AND COMMERCIALISATION PROGRAM

1930 – 1981 Oldham GW flooded battery mining cap lamp

1981 Introduction of VRLA AGM battery mining cap lamp

1981 – 1984 Extensive field testing and warranty analysis

1984 Introduction design improvements on VRLA AGM battery mining cap lamp

1992 1 000 000th sales of VRLA AGM battery mining cap lamp

1995 2 000 000th sales of VRLA AGM battery mining cap lamp

1997 Development of first 12V 100Ah VRLA AGM battery

2003 Introduction of first LED VRLA AGM mining cap lamp

2007 Prototype design for first VRLA AGM battery for Start/Stop vehicle

2008 First commercial production of Start/Stop VRLA battery

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START/STOP BATTERY DEVELOPMENT AND COMMERCIALISATION PROGRAM

2008 Design and tested to German Automobile & Industry Association Specification (VDA)

2009 Improved Start/Stop VRLA battery design

Additional BMW testing

Requested to consider transferring Start/Stop technology to Europe

2010 Start/Stop VRLA battery compliant to VDA and BMW testing requirements

Installation of state of the art VRLA production line at FNB

Sign Technical Aid Agreement with Rombat on Start/Stop

Develop relationship with Rombat

2011 Install state of the art VRLA formation plant at FNB

Entered into first negotiations with Rombat

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START/STOP BATTERY DEVELOPMENT AND COMMERCIALISATION PROGRAM

2011 Further develop of relationship with Rombat

Conditional supply approval on Start/Stop batteries for German Supply Council

2012 Automechanica SA Innovative Gold Award to FNB for VRLA Battery

Acquire Rombat

Supply first Start/Stop VRLA batteries to Rombat for Europe market

BMW SA give release to supply Start/Stop batteries to BMW Rosslyn plant

First delivery of Start/Stop VRLA batteries to BMW Rosslyn

Order state of the art Start/Stop VRLA production line for Rombat

Sale of 5 000 000 VRLA batteries to date (Including mining cap lamp)

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METAIR RE-BRANDING

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MET INVESTMENTS LIMITEDair

METAIR RE-BRANDING

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METAIR RE-BRANDING – OLD LOGO

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METAIR RE-BRANDING – NEW LOGO

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Q & A

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THANK YOU

WWW.METAIR.CO.ZA

DISCLAIMER

The information supplied herewith is believed to be correct but the accuracy thereof at the time of going to print is not guaranteed. The company and its employees cannot

accept liability for loss suffered in consequence of reliance on the information provided. Provision of this data does not obviate the need to make further appropriate

enquiries and inspections.

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